Redback seeks $30 mln credit deal, stays listed
WEDNESDAY, OCTOBER 22, 2003 7:12 PM
- Reuters U.S. Company News
RBAK
0.55 n/a
Enter Symbol:
Enter Keyword:
SAN FRANCISCO, Oct 22 (Reuters) - Network equipment maker Redback Networks Inc. (RBAK) said on Wednesday it entered into a commitment letter for a credit facility to borrow up to $30 million and that its stock will be listed on Nasdaq until at least Nov. 4.
Redback said the credit facility deal with Ableco Finance LLC would be secured by substantially all its assets and would bear interest at prime rate plus 3.5 percent per year.
The deal is subject to a number of conditions, including completion of a due diligence review by Ableco, definitive agreements and certain third party consents, San Jose, California-based Redback said in a statement.
The network gear maker, a smaller rival to network industry leaders Cisco Systems Inc. (CSCO) and Juniper Networks Inc. (JNPR) , said the credit facility would be available in connection with its completion of its previously announced out-of-court recapitalization plan or an in-court reorganization plan.
Proceeds would be used for, among other things, working capital and general corporate purposes, Redback said.
Additionally, Redback said that on Oct. 15 it received a decision from Nasdaq's Listing Qualifications Panel allowing it to remain listed on the Nasdaq National Market until at least Nov. 4 to obtain stockholder approval of its proposed reverse stock split.
If stockholders approve the reverse stock split by Nov. 4, Redback said it would be given a further extension until Dec. 12 to effect the split and demonstrate a closing bid price of at least $1 per share.
Redback shares closed on Wednesday at 55 cents, down 59.5 percent from their high of $1.36 this year on Jan. 13.
© Reuters 2003. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.
marketinfo.eqonline.de/charts/...f06f77d5382237c87299bef54738" style="max-width:560px" >
